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ParticipantI don’t see your logic Alex. The last time around, price only drop about 20-25% from peak and it took 10 years to get back to peak price. Also, the last peak was only 15-20% over value. Just take a look at Rich’s primer charts and you’ll see it’ll take awhile for inflation to catch up to 2005 price. We can have a 50% drop and bounce back hard for a 10-20% drop and stay there for 10-15 years, who knows how this will play out. Only time will tell. But looking back at historical prices vs inflation since the 1970s, RE price always traces inflation.
ParticipantAlex, I don’t think anyone is arguing that price will never go back to today’s level some day. The only question is when. I know people who bought at the peak of the last bubble and it took 10 years for it to return to the same price level and that didn’t take inflation into consideration. Who knows how long it will take, this time around, to get back to 2005 level.
ParticipantAlex, I don’t think anyone is arguing that price will never go back to today’s level some day. The only question is when. I know people who bought at the peak of the last bubble and it took 10 years for it to return to the same price level and that didn’t take inflation into consideration. Who knows how long it will take, this time around, to get back to 2005 level.
ParticipantAlex, I don’t think anyone is arguing that price will never go back to today’s level some day. The only question is when. I know people who bought at the peak of the last bubble and it took 10 years for it to return to the same price level and that didn’t take inflation into consideration. Who knows how long it will take, this time around, to get back to 2005 level.
ParticipantAlex and justbought, IF you can truly afford your home and losing $200k is a non event for you, then it’s not a very big risk for you. Risk is very different from person to person. Someone who stretch to afford that same home and losing $200k would drive them into bankruptcy, then it’s a huge risk. While someone with millions and losing $200k is just another day for the, this risk is minimum relative to their circumstances. Also, everything in life has some kind of risk associated with it, so I agree that it would never happen if you’re waiting for no risk time. But we all want to minimize risk as much as possible. Financial risk for a minimum wage worker vs a CEO is very different.
ParticipantAlex and justbought, IF you can truly afford your home and losing $200k is a non event for you, then it’s not a very big risk for you. Risk is very different from person to person. Someone who stretch to afford that same home and losing $200k would drive them into bankruptcy, then it’s a huge risk. While someone with millions and losing $200k is just another day for the, this risk is minimum relative to their circumstances. Also, everything in life has some kind of risk associated with it, so I agree that it would never happen if you’re waiting for no risk time. But we all want to minimize risk as much as possible. Financial risk for a minimum wage worker vs a CEO is very different.
ParticipantAlex and justbought, IF you can truly afford your home and losing $200k is a non event for you, then it’s not a very big risk for you. Risk is very different from person to person. Someone who stretch to afford that same home and losing $200k would drive them into bankruptcy, then it’s a huge risk. While someone with millions and losing $200k is just another day for the, this risk is minimum relative to their circumstances. Also, everything in life has some kind of risk associated with it, so I agree that it would never happen if you’re waiting for no risk time. But we all want to minimize risk as much as possible. Financial risk for a minimum wage worker vs a CEO is very different.
ParticipantI’m not talking about timing the market when you sell. I’m talking about jumping head first into a property when there are extreme risk involve and you can’t truly afford it in the first place. If I bought in 2000, I wouldn’t have sold. I would just enjoy my home for the stability and space you describe as well as a mortgage that’s probably cheaper than rent.
ParticipantI’m not talking about timing the market when you sell. I’m talking about jumping head first into a property when there are extreme risk involve and you can’t truly afford it in the first place. If I bought in 2000, I wouldn’t have sold. I would just enjoy my home for the stability and space you describe as well as a mortgage that’s probably cheaper than rent.
ParticipantI’m not talking about timing the market when you sell. I’m talking about jumping head first into a property when there are extreme risk involve and you can’t truly afford it in the first place. If I bought in 2000, I wouldn’t have sold. I would just enjoy my home for the stability and space you describe as well as a mortgage that’s probably cheaper than rent.
ParticipantAlthough some people buy houses for reasons other than investment, that doesn’t mean the financial consequences is not there when they make speculative assumptions when buying that home.
ParticipantAlthough some people buy houses for reasons other than investment, that doesn’t mean the financial consequences is not there when they make speculative assumptions when buying that home.
ParticipantAlthough some people buy houses for reasons other than investment, that doesn’t mean the financial consequences is not there when they make speculative assumptions when buying that home.
ParticipantBased on ZipRealty, it shows the property was on the market for 36 days before it was taken off. I agree that even @ $520k, it’s definitely not a deal, considering the 56 & offramp neighbor. I also am not sure if the bidder of $520k actually pass financing. According to the last auction, a few went back on the auction block after the bidder failed to secure financing. Too bad these auction house does not affect comps. But just the attendance alone shows a change in sentiment I think.
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